The market snapped its seven-day winning streak on December 10 on profit booking even as FMCG stocks provided some support on a day of losses. The BSE Sensex closed 143.62 points, or 0.31 percent, down at 45,959.88 and the Nifty slipped 50.80 points, or 0.38 percent, to 13,478.30.
“After resisting at higher levels, the Nifty took a breather and came down to the lower end of the range which is 13,400 but was quick to recover and close above the 13,450 level. This rangebound movement between 13,400 and 13,700 may continue for a couple of sessions before the market decides on its new course of action and the direction it wishes to pursue. Traders are advised caution; we need to approach this resistance zone meticulously,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
The Nifty FMCG index rose nearly 3 percent, while the PSU bank index shed 1 percent and auto and energy indices fell 1 percent each.
Broader markets mirrored the benchmarks, with the BSE midcap and smallcap index ending lower by over 0.5 percent each.
UPL, UltraTech Cement, Shree Cements, Tata Motors and M&M were among the major losers on the Nifty, while gainers included Nestle, ITC, Britannia Industries, HUL and Adani Ports.
Also Read – Gainers & Losers: 10 stocks that moved the most on December 10
Stocks & sectors
The BSE power and auto indices shed a percent each, while the FMCG index added 2.5 percent.
A volume spike of more than 100 percent was seen in Canara Bank, UPL and Pidilite Industries.
Long buildup was seen in ICICI Prudential, Godrej Consumer and Britannia Industries and short buildup in Canara Bank, Cummins and UPL.
More than 200 stocks, including Sintex Industries, MBL Infrastructures and GMR Infrastructure, hit a 52-week high on the BSE.
Technical View
The Nifty formed a small bearish candle with a long lower shadow on the daily scale, which indicates selling pressure at higher zones but declines are being bought.
The index saw a volatile swing of 100 points in the trading range, as it took support at 13,400 while Call writers were keeping it below 13,500 zones.
“Now it has to continue to hold above 13,350 zones to witness an up move towards 13,600 then 13,750 zones, while on the downside, key support exists at 13,300 zones,” said Chandan Taparia of Motilal Oswal Financial Services told Moneycontrol.
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